The tax laws are already extremely complex, is sales tax legal when buying anything on the interent?
2007-01-16 19:51:58 · 8 answers · asked by metalsoft@sbcglobal.net 2 in Business & Finance ➔ Taxes ➔ United States
In many cases, it is not only legal, but required. If the seller has what is called "nexus" in your state, that seller is required to charge you the appropriate sales tax and remit that amount to your state taxing agency. Nexus really means a type of presence, which could be something as large as a retail store or a simple as a single employee working there.
Those rules are complex, but in general most sellers will only charge when they have to. Most are happy to sell to states where they don't have nexus, since the process is less complicated for them, and their prices appear lower due to the lack of tax being added.
2007-01-17 00:23:18 · answer #1 · answered by bjlevine 3 · 5⤊ 1⤋
To collect sales tax a company must have a permit to do so. First you are assuming that the company does not have sales tax nexus in your state, however this is irrelevant to your question since the company is acting as an agent on behalf of your state by collecting sales tax which can also be voluntary (especially common in the streamlined agreement states) Presuming that the product qualifies as taxable property, the burden is on you, the purchaser to prove to the seller that you are exempt from tax by providing valid exemption/resale documentation in your state. Even if the company did not charge you tax and you are the end consumer of a taxable purchase, you must pay use tax to your state. Disclaimer: The above information is not intended as tax advice and should not be used for any purpose.
2016-03-29 01:15:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are no laws prohibiting a company from charging sales tax to out-of-state customers. The debate that you currently hear about is whether a state can force out-of-state sellers to collect tax for items sold into their state.
In a retail situation, the seller, be it your hardware store, local restaurant, etc. is acting as an "agent" of the state by collecting the tax you owe. The retailer then send your money to the state "for you". The question is whether a state can FORCE an out-of-state company to collect the tax just as they would the store down the street from you.
The U.S. Supreme Court has held that a state cannot make a person in another state act as an agent for them unless there is some "nexus" in the state, i.e. sufficient presence. In the context of sales tax, unlike state income taxes and other taxes, the retailer must have a "physical presence" in the state to have nexus. Physical presence need not necessarily mean they have a store there with some courts stating that merely having a related company, salesperson, or warranty servicer can create a physical presence.
So, no, there is nothing wrong with a company charging sales tax if they choose to do so.
2007-01-17 10:12:53 · answer #3 · answered by MDHarp 4 · 2⤊ 1⤋
Generally, YES. But each State has different regulations and tax laws. If you sell or ship out of a State you " usually " have to submit State Tax to that particular State. Sometimes companies have three or four warehouses or offices in the country and they must submit to each indivual State of what was sold thru that facility. Just a suggestion: I would check with your State Website and they usually have toll-free numbers to use to get help from the source. Best to check with them first, depending on the size of your business you maybe required to file montly, quaterly or yearly. All the best.
Example: www.state.pa.us
( This the website for the State of PA ) then you can go to their website and type in a keyword seach for State Tax Laws ) Hope this helps you.
2007-01-16 20:06:51 · answer #4 · answered by POOHBEAR 2 · 0⤊ 2⤋
Yes, if you are buying from a seller in the same state. Many online sellers have a Sales and Use Tax Permit, which enables them to buy wholesale from companies. Therefore, they must charge appropriate sales tax in the state they reside and sell in.
2007-01-16 20:59:51 · answer #5 · answered by grizzie2 2 · 0⤊ 3⤋
yes it is comples but the "general rule" is anything sold in your state that is taxable should be taxed on the internet. HOWEVER there is an exception to this if they use a credit card and it is PROCESSED by a state who is tax exempt (Ie Deleware) then there is no tax. (Clever little loophole they found a few years ago but the commiecrats are gunning to kill that loophole).
2007-01-17 02:05:52 · answer #6 · answered by Anonymous · 0⤊ 2⤋
If it is required in your state, yes.
2007-01-16 19:59:03 · answer #7 · answered by Tweet 5 · 1⤊ 2⤋
Its legal if you reside in the state you are purchasing from ,others no..
2007-01-16 19:55:54 · answer #8 · answered by Anonymous · 1⤊ 3⤋